Natural gas-fired power generation in the United States has soared to a record high so far this year, driving up global gas demand.
U.S. power producers generated a total of 55.6 million megawatt hours (MWh) from gas-fired power plants between January and September, according to data from LSEG quoted by Reuters’s columnist Gavin Maguire. This is up by 5% compared to the same period of last year. It’s also the highest power generation from natural gas since at least 2021.
Moreover, the share of natural gas in the U.S. power generation has also jumped to record highs this year. Since June, gas has accounted for a record-high 46% of the nation’s power generation, according to LSEG data.
The rising share of natural gas is undermining the Biden Administration’s goal of a ‘clean power’ grid by 2035.
In recent years, power demand in the United States, the single largest portion of which is delivered by gas-fired power plants, has soared and is expected to continue to surge with rising electrification and more electricity necessary to power and cool data centers.
U.S. power-generating companies are announcing plans for the highest volume of new natural gas-fired capacity in years as the AI boom is driving demand for electricity.
During the first half of 2024, electricity-generating firms unveiled plans for the new gas-powered capacity equal to all capacity announced in 2020, according to data from Sierra Club cited by Bloomberg last month.
Natural gas-fired electricity generation in the United States has jumped year-to-date compared to the same period last year, as total power demand rose with warmer temperatures and demand from data centers.
After more than a decade of flatlining power consumption in America, the AI boom and the chip and other tech manufacturing are leading to higher U.S. electricity demand.
For years, natural gas has accounted for the largest share of U.S. power generation, at around 40% of all electricity-generating sources.
By Tsvetana Paraskova for Oilprice.com
